A presentation from ACCC Deputy Chairman Mick Keogh at the 2019 Australian Wine Industry Technical Conference started so many conversations around me that it's obvious that the topic of contract terms is a hot issue at the moment.
During his presentation, Mick Keough took aim at contract terms. Darren Gray reports in the Sydney Morning Herald, 'Mr Keogh urged those in the audience who thought extended payment terms were justified, to consider the somewhat radical "proposal" he outlined.
"As a wine consumer, I think I should be able to select a bottle of wine off the shelf, and decide what it’s worth. I pay one-third of that when I leave the store.
"I'll pay a second one-third payment in six months, and I'll pay the balance when I get around to drinking it, which could be years in the future," he said.
"If you think this is a ridiculous proposal, then perhaps you need to reflect that this is essentially how the current contract and payment terms operate for wine grape growers," Mr Keogh told the crowd at the Australian Wine Industry Technical Conference in Adelaide.
Our National body, Australian Grape & Wine (AGW), has written a submission to the ACCC's interim report which you can read here. We welcome AGW's proactive approach to the report and their detailed submission which will be taken into account for the final report from the ACCC.
So what’s the Wine Grape Council of SA's role in wine grape contracts? As contracts are a commercial agreement, we cannot provide advice or advocate on growers' behalf. However, our website has a wealth of information, including a great guide on how to sell grapes written by Viticulturist Dr Mary Retallack, to assist growers with selling their grapes.
The biggest thing that hit me during Mick Keogh's presentation was the need for transparency and this is something that Australian Grape and Wine has also echoed.
As always, we would love to hear your thoughts. Send an email to firstname.lastname@example.org if you have something, you'd like to share about payment terms for wine grapes.